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There’s perhaps no better way to start a new quarter than with a fresh milestone, which is exactly what we got on Thursday when the S&P closed above 4,000 for the first time. It’s also a pretty good way to begin a new month!
The index jumped 1.18% to 4019.87. Needless to say, that’s a new all-time high and brings the S&P’s weekly advance to about 1.1%. The Dow increased 0.52% (or about 171 points) to 33,153.21 and was up 0.2% for the week.
However, the NASDAQ enjoyed the best performance on Thursday by advancing 1.76% (or about 233 points) to 13,480.11. It rose 2.6% over this shortened week after increasing more than 1.5% in each of the past two sessions.
The indices are coming off of a challenging but ultimately positive first quarter, which saw the Dow jump 7.8%, the S&P rise 5.8% and even the challenged NASDAQ advance 2.8%. They were all in the green for the month of March as well.
This upswing comes a day after the Biden Administration outlined its more than $2 trillion infrastructure plan. The market loves the spending, but the taxes that come along with it could be a problem moving forward. Plus, it will certainly face problems in Congress. This is a story that’s going to be with us for a long while.
Fortunately, there are plenty of encouraging things happening right now! In addition to the vaccine rollout and the accommodative Fed, we enjoyed some solid economic data today. The ISM manufacturing index soared to 64.7 in March, which crushed February’s 60.8 and expectations for 61.5. The market was also pleased to see the 10-year Treasury yield dip below 1.7% for the first time in several days, which is probably a big reason why tech had such a strong session.
And then there were the jobless claims, which unfortunately didn’t join in the fun and rose to 719,000 last week. The result soared past expectations of 675K. The most disappointing aspect, however, was that claims were back over 700K after moving below that mark last week for the first time in months.
The main event when it comes to jobs is tomorrow’s Government Employment Situation report… though the market will be closed for Good Friday. Expectations are for more than 650K jobs added, which would trounce the previous month’s 379K.
Today's Portfolio Highlights:
Headline Trader: The new $2.3 trillion infrastructure bill is a real boon for renewable energy producers, so Dan gained exposure to that group on Thursday by adding NextEra Energy (NYSE:NEE). This clean energy utility enterprise is the largest producer of solar and wind energy; a leader in battery storage; and maintains a massive backlog of renewable energy projects. The portfolio added NEE today with a 5% allocation as the stock has pulled back from its January highs. But the editor feels it may be ready to break out given the new bill and the low interest rate environment. The portfolio also sold Alibaba (NYSE:BABA), as the Chinese tech powerhouse has been a “dog” since being added a month and a half ago. Read the full write-up for more on today’s moves, including Dan’s comments on that infrastructure bill.
Counterstrike: The market started a new month and quarter today with a rally that saw the S&P close above 4,000, so Jeremy added to a couple names on Thursday to kick things off with some “aggression”. He added 4% each to The Trade Desk (NASDAQ:TTD) and Canada Goose (GOOS). Meanwhile, the NASDAQ rose above its 50-day, which was the stop for ProShares UltraPro Short QQQ (SQQQ). The editor exited this hedge today. Read the full write-up for more.
Blockchain Innovators: This portfolio had the two best performers of the day among all ZU names as Camtek (NASDAQ:CAMT) rose 9.9% and Amtech Systems (NASDAQ:ASYS) advanced 8.6%. CAMT is one of the service’s biggest winners by soaring more than 350% since being added a year ago. ASYS was only added three weeks ago and has advanced about 5% in that time.
Have a Great Weekend!
Jim Giaquinto
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